Harvest Plan 2024-25: government announces R$400 billion to boost Brazilian agriculture

On the afternoon of this Wednesday (03), the Federal Government launched the new 2024/2025 Harvest Plan, within the scope of the Ministry of Agriculture (Mapa), which aims to boost the Brazilian agricultural sector by offering lines of credit, incentives and agricultural policies for medium and large producers. In this edition, R$400,59 billion are allocated for financing, which represents an increase of 10% compared to the previous harvest. 

Rural producers will still be able to count on an additional R$108 billion in resources from Agribusiness Letters of Credit (LCA), for issuing Rural Product Notes (CPR) — which will be complementary to the incentives of the new Safra Plan. In total, there are R$508,59 billion for the development of national agriculture.

Resources for Business Rural Credit

LCAs are debt securities issued by financial institutions, which are backed by loans and financing for agricultural activities. When investors invest their resources in LCA, they are lending money to the financial institution and helping to promote agribusiness. LCAs and CPRs are closely linked in agribusiness financing, because the CPR is an exchange and declaratory security, which represents a promise to deliver agricultural products.

Resources for Business Rural Credit

Of the R$400,59 billion in credit for corporate agriculture, R$293,29 billion (+8%) will be for funding and marketing and R$107,3 billion (+16,5%) for investments. In relation to resources per beneficiary, R$ 189,09 billion will be at controlled rates, directed to the National Support Program for Medium Rural Producers (Pronamp) and other producers and cooperatives, and the other R$ 211,5 billion will be allocated to free fees.

Interest rates for funding and marketing are 8% per year for producers included in Pronamp. For investments, interest rates vary between 7% per year and 12%, depending on each program.

Responsible farming - the 2024/2025 Harvest Plan, as in last year's edition, will continue to encourage the strengthening of environmentally sustainable production systems. For this, rural producers who already have their Rural Environmental Registry (CAR) analyzed will be awarded, as well as those rural producers who adopt agricultural practices considered more sustainable.

In this harvest year, the Federal Government continues to encourage good practices. The reduction may be up to 1,0 percentage point in the funding interest rate.

Renovagro - the Program for Financing Sustainable Agricultural Production Systems (RenovAgro) incorporates investment financing identified with the objective of encouraging Adaptation to Climate Change and Low Carbon Emissions in Agriculture. Through it, it is possible to finance sustainable practices such as the recovery of degraded areas and pastures, the implementation and expansion of crop-livestock-forest integration systems, the adoption of conservationist use practices and the management and protection of natural resources.

The implementation of organic agriculture, recomposition of permanent preservation areas or legal reserves, the production of bio-inputs and biofertilizers, systems for generating renewable energy and other practices that involve sustainable production and culminate in low emissions of gases can also be financed. of the greenhouse effect.

A novelty in this harvest year is that RenovAgro Ambiental will provide financing to carry out adequate environmental repairs in embargoed areas, so that they can become legal.

RenovAgro Dendê, which focuses on the implementation, improvement and maintenance of oil palm forests, is renamed RenovAgro Palmáceas this year. Now, it includes all species in this family with a focus on energy production.

Programs - in the financing line for investments, there are 13 programs that provide innovation and modernization of productive activities, contributing to the continuity of gains in productivity, competitiveness, employment and income.

Check out the Safra Plan investment programs